Apollo - SP (Most States)
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Key Takeaways
- Apollo - SP is a Single Premium Deferred Annuity.
- Minimum contribution starts at $5,000.
- Withdrawal of interest or 10% annual withdrawal is allowed starting the first year.
- Offers significant income options for diversifying the payments.
- Death benefit equal to annuity value is payable upon death.
- During the first 12 months, withdrawal can be up to 10% of the single premium penalty-free.
Pros and Cons of Apollo - SP (Most States)
Pros
- Offers 10% penalty-free withdrawal in first year.
- Guaranteed 1st year interest rate of 3.7%.
- Offers multiple income options including life annuity.
- Offers death benefit equal to annuity value.
Cons
- High surrender penalties in early years.
- Withdrawals in excess of 10% of premium in first year result in penalties.
- Limited accessibility and flexibility in the first year.
The Apollo - SP is a Single Premium Deferred Annuity. The minimum initial contribution is $5,000. Systematic withdrawal of interest or 10% annual withdrawal beginning in the first year. Cumulative beginning in year 3 up to a maximum of 30% of the single premium.
Minimum Premium:
Minimum Premium:
- $5,000
Maximum Premium:
- Age 0-75 - $1,000,000
- Age 76-85 - $500,000
(premium over thresholds above require prior approval.)
Income Options
Income Options
- Life annuity—A monthly income payable over the annuitant’s lifetime.
- Life annuity with payments certain—A monthly income payable over the annuitant’s lifetime with the additional guarantee that in the event of death prior to the end of the specified period (such as 5, 10 or as long as 20 years), payments will continue to your designated beneficiary for the remainder of the specified period.
- Designated period annuity—A monthly income payable in equal installments for a specified period (such as 5, 10 or as long as 20 years).
- Joint and last survivor annuity—A monthly income payable over the lifetime of an annuitant and thereafter during the lifetime of a designated surviving annuitant.
Death Benefit
Your annuity contract’s death benefit is payable to your beneficiary upon your death. If you are also the annuitant, then your policy’s death benefit will be equal to the annuity’s value. If the annuitant is someone other than you, the policy’s death benefit is equal to the annuity value less any applicable surrender charges.
Funding Your Annuity
- IRA rollovers & transfers -- All of our fixed annuities can be purchased as Traditional Individual Retirement Annuities with rollover funds from qualified employer plans or rollovers or transfers from existing IRA accounts with other financial institutions
- Roth IRA conversions-- All of our fixed annuities can be purchased as Roth Individual Retirement Annuities and can be used to convert Traditional IRAs to Roth IRAs
Notes:
TSP funds have to be rolled into an IRA.
Reliance Standard only issues Inherited IRA annuity contracts under the following qualifications:
TSP funds have to be rolled into an IRA.
Reliance Standard only issues Inherited IRA annuity contracts under the following qualifications:
- The Beneficiary (new owner) must be the original (1st Generation) beneficiary of the deceased Traditional/SEP IRA Owner.
- The Beneficiary (new owner) must be age 65 or younger.
- The original Traditional/SEP IRA Owner’s Date of Death may be no more than five years from the application date.
- The original Traditional/SEP IRA Owner’s Date of Death must have occurred prior to January 1, 2020.
Partial Withdrawals: During the first 12 months of your contract, you can withdraw up to 10% of the single premium paid penalty-free, and, in any contract year thereafter, up to 10% of the annuity value penalty-free. If you should withdraw more than the penalty-free amount in any contract year, the entire amount withdrawn during that contract year is subject to the applicable MVA and surrender charges.
Cumulative Withdrawal Benefit: If no penalty-free withdrawal is taken in contract year two or any contract year thereafter, the amount of that contract years penalty-free withdrawal may be carried over into the following year. If no withdrawals are made for one or more successive years, the penalty-free withdrawal will accumulate up to a maximum penalty-free withdrawal limit of 30% of the single premium paid. Any penalty-free withdrawal carry over balance will return to zero as soon as a penalty free withdrawal of any amount is taken.
Traditional Fixed Annuity Interest Rates
| Surrender Years | First Year Yield | Term Guaranteed Yield | Term Current Yield |
|---|---|---|---|
| 7 | 6.45% | 3.49% | 4.74% |